EUR/USD is heading higher for the fifth consecutive day on Tuesday, trading just above 1.1650 at the time of writing, from 1.1580 lows last week. The first signs of de-escalation in trade tensions between the US and China, a rare earths agreement with Japan, and hopes that the Federal Reserve (Fed) will cut interest rates further on Wednesday, are buoying risk appetite and keeping the safe-haven US Dollar (USD) under pressure.
US President Donald Trump has signed an agreement with Japan to secure the supply of rare earths and has kept a positive tone towards China as he tours Asia, affirming that he is optimistic about signing a good deal with Chinese President Xi Jinping. Earlier this week. US Treasury Secretary Scott Bessent assured that the 100% tariff threat is off the table, as China has agreed to delay the restrictions on rare earths at their talks in Malaysia over the weekend.
Meanwhile, the softer-than-expected US inflation data seen last week has practically confirmed that the Fed will cut the Federal Funds Rate by 25 basis points on Wednesday. The central bank is lacking key macroeconomic data to sustain its decisions, as the US government shutdown enters its fifth week, but markets are expecting the bank to hint at a third rate cut in December. Failure to do so might trigger a significant recovery in the US Dollar.
Before that, the US Housing Price Index and Consumer Confidence data might provide some guidance for US Dollar pairs, although a significant US Dollar recovery seems unlikely as long as investors’ appetite for risk remains alive.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.10% | 0.16% | -0.64% | 0.06% | 0.04% | 0.00% | -0.23% | |
| EUR | 0.10% | 0.27% | -0.53% | 0.16% | 0.15% | 0.08% | -0.13% | |
| GBP | -0.16% | -0.27% | -0.77% | -0.11% | -0.12% | -0.17% | -0.41% | |
| JPY | 0.64% | 0.53% | 0.77% | 0.69% | 0.67% | 0.63% | 0.39% | |
| CAD | -0.06% | -0.16% | 0.11% | -0.69% | -0.03% | -0.06% | -0.30% | |
| AUD | -0.04% | -0.15% | 0.12% | -0.67% | 0.03% | -0.04% | -0.28% | |
| NZD | -0.00% | -0.08% | 0.17% | -0.63% | 0.06% | 0.04% | -0.24% | |
| CHF | 0.23% | 0.13% | 0.41% | -0.39% | 0.30% | 0.28% | 0.24% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Daily digest market movers: The Euro remains buoyed by positive risk mood
- The positive market mood keeps buoying the Euro (EUR) at the detriment of the safe-haven US Dollar, offsetting the impact of downbeat Eurozone economic releases like the German GFK Consumer Confidence Index, which deteriorated beyond expectations in November.
- Data released by the German GfK research company revealed that consumer confidence in Germany dropped to -24.1 in November, its worst reading in the last seven months, from -22.3 in September, and against market expectations of a mild improvement to -22.0.
- US President Trump continues his tour through Asia. He has met Japanese Prime Minister Sanae Takaichi, while Treasury Secretary Bessent called for a “sound monetary policy” in Japan, putting some pressure on the Bank of Japan (BoJ) to continue its monetary tightening cycle.
- The US and Japan have signed a framework deal to secure the mining and processing of rare earths and other critical minerals and reduce their dependence on China. The news has contributed to lifting investors’ mood.
- A survey by the ECB revealed that consumers’ inflation expectations for the next 12 months eased to 2.7% in September, from 2.8% in August, while the three and five-year expectations remain unchanged at 2.5% and 2.2% respectively. The impact of the survey on the Euro has been muted.
Technical Analysis: EUR/USD resistances are at 1.1670 and 1.1730
EUR/USD is on a short-term bullish trend from last week’s lows at 1.1580. The pair has been appreciating over the last five trading days, yet with momentum indicators on the 4-hour chart suggesting a frail trend. The Relative Strength Index (RSI) is in bullish territory above 50, but the Moving Average Convergence Divergence shows short green histogram bars.
Price action remains within previous ranges, with the October 20 high, at 1.1675, closing the path towards the October 17 highs, in the area of 1.1730. The pair needs to breach this level to confirm the bullish trend and aim for the October 1 high, near 1.1780.
On the downside, Monday’s low at the 1.1620 area is the prime support ahead of the October 22 low near 1.1575 and the key support level at the 1.1545 area (October 9 and 14 lows).
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day.
EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy.
The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa.
The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control.
Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency.
A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall.
Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period.
If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
